Question $3$: General Journal

$(53$ marks$)$

Qasim started a business on January $1,2023.$ During the month, the following financial transactions happened $($for each transaction $4$ marks, a total of $52)$:

Note: Please write a heading and use the correct template $(1$ mark$)$

$\backslash$table$[[2023,],[\frac{1}{\frac{?}{?}}1,$The business issued R$.$O$.20,000$ shares of common stock for cash from Qasim.$],[\frac{2}{\frac{?}{?}}1,$purchases equipment on account for R$.$O$.3,500,$ payment due within the month.$],[\frac{3}{\frac{?}{?}}1,$receives R$.$O$.4,000$ cash in advance from a customer for services not yet given.$],[\frac{4}{\frac{?}{?}}1,$Provide service worth R$.$O$.5,500$ to a customer on account.$],[\frac{7}{\frac{?}{?}}1,$pays a R$.$O$.300$ utility bill with cash.$]]$

MEC$\_$AMO$\_$TEM$\_035\_04$

Page $2$ of $12$

Principle of accounting $($BUSS$-$B $1004)-$ Spring$-24-$ CW$1($Assignment$)-$ All $-$ QP

$\backslash$table$[[\frac{9}{\frac{?}{?}}1,$receives R$.$O$.2,800$ cash from a customer for services given.$],[\frac{10}{\frac{?}{?}}1,$paid in full, with cash, for the equipment purchase on January $2.],[\frac{11}{\frac{?}{?}}1,$paid R$.$O$.3,600$ cash in salaries expenses to employees.$],[\frac{16}{\frac{?}{?}}1,$received cash payment in full from the customer on the January $4$ transaction.$],[\frac{23}{\frac{?}{?}}1,$purchases supplies on account for R$.$O$.500,$ payment due within three months.$],[\frac{25}{\frac{?}{?}}1,$He made sales during the day and received a total of R$.$O$.5,000$ cash.$],[\frac{27}{\frac{?}{?}}1,$He paid the electricity bill expenses that cost R$.$O$.350$ rials cash.$],[\frac{31}{\frac{?}{?}}1,$Qasim withdrew an amount of R$.$O$.550$ rial for his personal use.$]]$

Question $4$: Cash and Accrual basis accounting $(22$ marks$)$

Part $1$: From the answer given in Question $3,$ prepare cash basis accounting $(9$ marks$).$

Part $2$: in a table, differentiate between the Cash basis and Accrual basis accounting. Use secondary data and add citations to the paragraphs $(13$ marks$).$